Kula/Aurumin JV reports 98,500t maiden gold | Australian Markets

Kula Gold and Aurumin Limited have reported a maiden JORC-compliant inferred useful resource of 98,534 tonnes of outdated mine tailings grading 0.63 grams per tonne (g/t) gold on the three way partnership’s Mt Palmer gold mine in Western Australia’s Southern Cross greenstone belt.

The inferred useful resource, outlined by 60 air core drill holes, incorporates 1996 ounces of gold at a 0.4g/t cut-off, with preliminary metallurgical testwork displaying an average 86 per cent gold restoration price.

Processing choices for the at-surface tailings useful resource are actually being evaluated. There is critical further tailings tonnage present process additional testwork which, as soon as accomplished, ought to add to this useful resource within the short time period.

Dawson mentioned Mt Palmer’s larger image was painted by high grades intersected at shallow depths within the adjoining historic mine, the place the company is shifting in direction of diamond drilling after which useful resource definition.

The tails useful resource lies within the joint-venture’s granted mining lease, which was drilled by a Challenger RA-150 air core rig utilizing a 3.5-inch face sampling hammer.

Kula believes the hole-spacing adequately checks the tailings’ lateral and depth extent, with collar areas surveyed to millimetre-level accuracy by a survey customary GPS.

Samples have been collected from 0.5-metre to 4m depth intervals – principally at 1m – and have been weighed on the rig, break up by way of a cone splitter and assayed utilizing Intertek’s Photon technique. Duplicates and requirements have been inserted at a 1:40 ratio, with minimal contamination dangers, because the samples have been dry.

Dry bulk densities have been measured from six trench and core samples, averaging 1.35 grams per cubic centimetre.

The metallurgical testwork employed Intertek’s Leachwell cyanide extraction on seven drill samples and reported gold recoveries between 60 per cent and 100 per cent, with an average of 86 per cent. One pattern reported a 107.2 per cent restoration price on account of assay variability between the leach and unique samples.

The useful resource was computer-modelled utilizing a 3D wireframe primarily based on geological logging and assay knowledge and was labeled as inferred due to the present drill density and geological continuity. A 0.4g/t gold cut-off grade was established, primarily based on the prevailing financial components.

The surface-stockpiled tailings, that are already pulverised and simply mined, offer Kula a low-cost alternative for early monetisation. The Marvel Loch gold plant, 28 kilometres away, might be a processing option.

Kula is already taking a look at extending its drilling program to incorporate different untested elements of the tailings repository and can embody a few more infill holes to sharpen up all the model, if doable elevate the useful resource classification to indicated, and additional construct the useful resource.

Kula holds an 80 per cent stake within the three way partnership. Under the phrases of their settlement, Aurumin is now diluting its 20 per cent JV curiosity.

With the gold price at about $5200 per ounce, the present tailings useful resource would have an unprocessed, at-surface worth of more than $10 million.

Combined with the tailings’ high metallurgical recoveries and easy, short-range mining, transport and processing, the tails might considerably improve the enterprise’s worth.

Kula is now planning a diamond drilling program to develop its primary concentrate on the hard-rock part on the Mt Palmer mine, the place shallow high-grade intercepts point out important further potential.

Meanwhile, the tailings might be a well timed and profitable stepping stone in direction of broader project development.

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